i'm shannon bream. good night, from washington. >> shep: this is the fox report. progress reported in the middle east. talk of a rocket pause. but it has not happened. now the united states is for the first time all in as president obama sends the top diplomat to the battle zone. containing the violence in a region on the brink. secretary of state clinton now on the ground. >> america's commitment to israel's security is rock solid and unwavering. >> shep: but with no specific proposal to broker a peace deal, can the u.s. do anything to prevent more bloodshed? plus terror bust about in

california. the feds arresting four men they say had ties to the now dead radical preacher anwar al-awlaki. tonight details of what investigators say the suspects had planned. and the dirty secret at some of the nation's biggest airports. filthy and potentially dangerous air inside the terminals. tonight the suspected cause and which airports the feds say are just plain nasty. but we begin with a fox urgent new explosions now in gaza after the secretary of state hillary clinton arrived in the middle east to try to prevent all-out war. live images coming from gaza city. if you watch closely, you can see the fires in the upper part of the screen and we've seen much more. so keep watching. this is the apparent aftermath of explosions that happened just a few minutes ago. israel has been launching air strikes for a week now as hamas militants fire rocketses into the country.

egypt has president is leading the talks. earlier today, he said a truce could be hours away. that didn't happen. the attacks continue now on both sides of the border. earlier today in jerusalem, air sirens, ho mass militants say they fired a rocket at the holy city just as the u.n. secretary general was arriving there for truce talks. it's but the second time hamas targeted jerusalem during this conflict. it landed outside the city. no word of any injuries. but the israeli military reports an 18-year-old soldier did die in a rocket attack today in the south of israel. he is the first israeli service member reported killed in a week of fighting. and the israelis are now firing back with air strikes. officials say this attack on a car in gaza city killed a militant and five other people. secretary clinton arrived in israel during studio b today after cutting short a trip to asia with the president. she just met with the israeli

prime minister, netanyahu. officials say she'll also meet with the palestinian leader, abbas, and the egyptian president, morsey. but not with leaders of hamas. the united states does not deal directly with that militant group. so it's using egypt as a go between. the white house says president obama spoke with the egyptian leader not once, but three times in the last 24 hours on the trip back from asia. now hillary clinton on what could be her last peace mission, one that could help define her legacy and shape the history of the middle east and beyond. it's very big news and we have team fox coverage. david lee miller in the south of israel for us. first jennifer griffin live at the state department. how long does secretary clinton say she plans to stay in the middle east? >> well, her aides say she will be home for thanksgiving. so that's not very long. she plans to leave tomorrow night. they also say this is not her last peace mission. she will still be making other

attempts and other trips overseas as secretary of state. her meeting with prime minister benjamin netanyahu just ended, we're told, and from the body language earlier tonight when they spoke, it didn't look like they were on the verge of a deal. >> it is essential to deescalate the situation in gaza. the rocket attacks from terrorist organizations inside gaza on israeli cities and towns must end and a broader calm restored. >> no country can tolerate a wanton attack on its civilians. now, if there is a possibility of achieving the long-term solution to this problem through diplomatic means, we'd prefer that. but if not, i'm sure you understand that israel will have to take whatever action is necessary to defend its people. >> late tonight, hamas spokesman said that a cessation of hostilities was not possible tonight. >> shep: it sounded like hamas had come up with a plan that

israel wasn't on board with all of it and now whatever this mission is may take longer than first thought. >> that's right. and it's really not clear what secretary of state hillary clinton can achieve while she's there. her aides say that she was there to essentially deescalate the situation. we asked the deputy foreign minister as he left the state department tonight if israel was under any pressure from the u.s. not to proceed with a ground invasion into gaza. he said no, not at all on the contrary. they were receiving a lot of support from the u.s. he said there was no daylight between the two countries. disarming hamas and ending the smuggling of staged rockets made from iranian components through the gaza tunnel that come from egypt may be more than the secretary of state can accomplish in 24 hours if she plans to be home for thanksgiving. >> shep: jennifer griffin from the state department tonight while in gaza. a horrifying scene on the town street. six people executed. six hamas accused of

collaborating with israel. as the story goes, masked gunmen dragged the victims into the street, forced them to lie face down, then shot each in the back of the head. all as a crowd gathered around, taking pictures with cell phones. as if it warn others what happens to spies or even suspected spies, look at this. the militants tied one of the bodies to the back of a motorcycle and dragged the human remains through the streets. the head of a hamas run television station claims an israeli air strike killed two palestinian cameramen and another journalist. we can't confirm the report, but if true, the associated press claims targeting of journalists would be unprecedented. david lee miller in southern israel for us early this wednesday morning. just across the border from the gaza strip. so air strikes continue? >> exactly. there has been an escalation over the last several hours and a report that the french news agency is saying that the building where it operates came

under attack. it was hit by an israeli air strike. israeli officials say this building was targeted boughts also operating in it, the hamas intelligence service. in the last few hours, we have seen a total of 25 strikes taking place tonight in gaza. these strikes involve not just the air force, but also there is artillery, and the israeli navy. other targets include rockets, as well as tunnels. about half of the population who has died there, some 130 people have died, are civilians. res did not say coping with the air strikes is extremely difficult because they do not have air raid sirens and they do not have any air raid bunkers. listen to what one father had to say. >> i have a daughter. she's always hugged me because she's frightened. she can't do anything. just she's saying that i'm frightened. what shall i do as a father? this is the problem. >> israel says the militants

purposely operate in areas with a high civilian population, essentially using these people as human shields. >> shep: david lee, the mentioned the israelis targeting these rocket sites, but clearly they've not been able to get them all. >> no, they haven't. over my shoulder there is the iron dome missile defense system. just seconds before we went on the air, there was a rocket attack. the iron dome battery behind me fired at least two of these interceptors. in total today, there have been at least 130 rockets that have been fired into israel by the militants in gaza. one of these rockets traveled as far as tel aviv suburb. it hit an apartment building there. it did extensive damage. there were no serious injuries. but this is the furthest hit yet when it comes to an israeli city. what many of the residents of israel say, they do not want to see a ground incursion when it comes to these rocket attacks, they say they must come to an

end. listen. >> cannot go to the job. our life is upside down. scarey. it has to stop. >> there were also air raid sirens in jerusalem today. one of the rockets landed outside that city. ironically in a palestinian village. >> shep: david lee miller live in israel where the military warned civilians in gaza to avoid certain areas during this conflict. many of the people in the tightly controlled territory say there is no place to go. a look at that coming up inside fox report. there are also big developments to report on the civil war just across israel's northern border in syria. rebel there is today reportedly captured a major military base, as well as all of the weapons inside it. tanks, armored vehicle, cannons, on and on. and what we're told are truck loads of munitions. this could be a game changer. it's picture of an antigovernment fighter standing atop a captured tan.

the rebels laid siege for to that base for two months. rebel commanders say the victory over the government will give them a major boost and could be a tactical turning point in a civil war that has raged since early 2011. there was heavy fighting reported in the capital city of damascus. more than 40,000 people have died in the syrian civil war. the f.b.i. now reports four men in california are under arrest now charged with conspiring to kill americans. and one of the suspects reportedly once served in the united states air force. but will this f.b.i. operation hold up in court? a live report is next. plus another record day on wall street, except today it's for what could be the largest insider trading bust ever in the history of the market. it's a busy news night from the journalist of fox news on a tuesday fox report ut that steak. i'm going to dream about that tiramisu.

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>> shep: he served in the air force, a u.s. citizen plot to go join al-qaeda and to the taliban to kill americans overseas. he's one of four men from southern california facing charges of planning to bomb u.s. government buildings and military bases. they arrested him after two of them told an informant they were planning to go to afghanistan and commit violent jihad against americans. more on that informant in just a moment. first, investigators say the suspects studied internet postings by the radical american cleric, anwar al-awlaki, a one-time al-qaeda leader at yemen who we've since killed. the feds have also linked al-awlaki to fort hood massacre. the attempted underwear bombing on a flight to detroit, the botched times square car bombing. he was a big deal until he got droned in yemen last year. adam housley is in los angeles. what do we know about the suspects? >> yeah. the four suspects are from the inland empire of southern california. about an hour to the east. we know this, the leader was a

34-year-old, a naturalized u.s. citizen from afghanistan. he was arrested in afghanistan. the other three were arrested here. ralph deleon, the other awaiting citizenship here in the u.s. and another man from riverside. the four of these men all wanted to join the taliban. >> they discussed wanting to join the taliban and ultimately graduating to joining al-qaeda, who they referred to as the professors. >> as part of al-qaeda, the f.b.i. alleges they wanted to blow up american sites, kill american soldiers and cause mayhem. >> shep: they only talked about this. they didn't do anything. what do we know about the f.b.i. informant? >> the interesting thing about the f.b.i. informant is they had the f.b.i. stopped these guys before it happened. they won't say whether this guy flipped on them or was he someone that found out about them and went to the f.b.i

they haven't discussed how this fifth person got involved with the group. but it's very clear he was involved from very early on. he tried to get them to change their mind on a number of occasions and every time it's said, according to the f.b.i. allegations, that the men wouldn't do it. he was paid $250,000 for turning them in. >> adam housley. >> shep: shot on her school bus. a 13-year-old girl killed south of miami and it happened in front of her own sister. the cops say they have taken a male student into custody and are interviewing him. investigators don't know the motive. we don't know the name or the age of this guy they've locked up. but cops reportedly found the gun right there at the crime scene. they say eight other kids were on the bus and saw it all. but they did not get hurt. the feds say they busted a wall street insider for trading on what they claim might have been the most lucrative inside tip of all time. f.b.i. agents have now arrested a former investment fund

manager, happened today. prosecutors are charging him with securities fraud. they say that between 2006 and 2008, he traded stock in two drug companies based on insider information. they say a doctor involved in tests of a drug for alzheimer's disease gave him a private -- bit of private information about how the tests were going and as a result, they say he avoided losses and made profits of more than a quarter million dollars. the defendant's lawyer denies the allegation, saying he succeeded through hard work. police reportedly have taken two men into custody in connection with a explosion that killed two people and damaged 80 homes in indianapolis. now there is word somebody intentionally leaked gas into the house. at the center of what is now a massive homicide investigation. who would do such a thing? that's next. black friday's here. sara has her list.

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>> shep: there is word police now have two guys for questioning in the homicide investigation in the mysterious house explosion that killed two people in indianapolis. all of this as we learn more about how the cops think the home actually went up in flames. our indianapolis affiliate, wxin, is reporting that officers picked up the two men a couple of hours ago and that they're now looking for a third person. police won't confirm that report, but earlier today investigators say somebody did intentionally release gas from a pipe or stove before a spark blew the place up. meanwhile, according to the indianapolis star newspaper, the couple who bought the house divorced last year. the ex-wife had been living there with her now boyfriend. he reportedly has a long criminal record that dates back frankly decades. cameras caught up with the pair leaving their lawyer's office a few hours ago. so far police have not commented on the homeowners. the november 10 blast killed a second grade teacher and her

husband and this is what the house looks like now. trace gallagher with more. what do we know about the two guys they picked up? >> so far neither one has been i.d'd. but our fox affiliate is saying one man has close ties to mark leonard. a long criminal record. the two men were picked up in separate locations, including a mobile home park that was surrounded by swat teams. the homes of those men were also searched. it's unclear if they're the same men police think were driving that mysterious white van that was seen in the neighborhood where the home exploded in the weeks before the explosion. but police did also today, we have now confirmed, impound a white van. shep. >> shep: if somebody let gas out, someone may have sparked it. is that the thinking?

>> they believe the spark was done remotely and say that anybody with basic knowledge about explosions would know that if you flip open a gas valve and let the house fill up even to 10%, that explosions can be sparked very easily by something as simple as turning on a light or a thermostat or even a television. police took it a step further saying there was no sign at all inside this house of any type of booby trap. though they did say it appears that this thing was deliberately done and that it was planned out. >> shep: trace gallagher, thanks. she left a group of kids home alone with oil cooking on the stove while she went out shopping. today she learned her punishment. >> it is the order of this court that you, jessica tata, in accordance with the injured verdict are here by sentences to 80 years confinement in the texas defendant of criminal justice. >> shep: 80 years. the jury could have given her as little as five. but as it stands, the woman will not be eligible for parole until

she's at least 64. four children died under her care when the oil she left cooking caught fire. three other people hurt. today's sentence for a single felony murder conviction, and jessica tata still faces much more. more than a half dozen charges in connection with all those other victims. her defense attorney said the deaths were an accident. we're seeing new explosions tonight in gaza. israel apparently firing back at militants who have been launching rockets at israeli targets. now we're hearing the israelis are also trying to cut off the supply of those rockets. plus leaders of a church with millions and millions of followers decide whether to make history by allowing women to become bishops. that's coming up as we approach the bottom of the hour and the top of the news i gave birth to my daughter on may 18th, five days later, i had a massive heart attack. bayer aspirin was the first thing the emts gave me. now, i'm on a bayer aspirin regimen.

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>> shep: stunned silence at a meeting of church of england hierarchy after it blocked a move to allow women to finally serve as bishops. that's the word from a clergyman inside today's vote. after more than a decade of debate, lay members came up with just a few votes shy of the two-thirds majority they needed to make the change. bishops and other clergy voted in favor of it. one priest called the outcome a train crash. church officials say it may take five years before they can get another vote. women already serve as bishops in inc.ly cannes churches in the united states, australia and puzo zeeland. residents evacuate as

emergency crews battle a massive brush fire and that tops our news around the world in 80 seconds. australia. local media report it broke out in the south and has hundreds of acres of farm land. several water dropping planes joined the fight as high winds pushed the flames and thick smoke closer to port lincoln, the largest city on south australia's coast. last word, nobody hurt. china. a massive exhibit of ancient chinese terra cot kata warrioring entering its final weeks. many are on display, life size warrior sculptures that date back to 200 bc. mexico, dozens of clowns from across the country joined in the tenth annual clown olympics in mexico city. diving, a tug of war, and a clown shoe relay race among the

events determining the clown athlete of the year. the games raised money for food donations. belgium. creators unveil the world's largest chocolate train at this year's belgium chocolate week in brussels. it took more than 800 hours to make the 112-foot long train which guiness recognizes as the longest of its kinds. also a piano made entirely out of chocolate and that's a rap on this fox trip around the world in 80 seconds. >> shep: i'm shepard smith. this is "the fox report." it's the bottom of the hour. time for the top of the news. secretary of state clinton says hamas must stop firing rockets at israel. this is video from hamas, some of those rocket attacks.

fox news can't independently verify the video. secretary clinton is in the middle east tonight trying to prevent an all-out ground war in gaza. they met with netanyahu and said the united states is pushing for more than just a temporary cease fire. >> in the days ahead, the united states will work with our partners here in israel and across the region toward an outcome that bolsters security for the people of israel, improve conditions for the people of gaza, and move toward a comprehensive peace for all people of the region. >> shep: just as secretary clinton was meeting with the prime minister netanyahu, we got word of explosions in gaza. reportedly from new israeli air strikes. we have team fox coverage. jonathan hunt is with us at the united nations. let's first go to ed henry live at the white house. egypt is play ago key role in these talks. how is that going with the new president there? >> so far, so good. but there are a lot of wary eyes

here at the white house and around the world because president morsi is new. he's from the muslim brotherhood. a lot of question marks about whether he can really be trusted. you'll remember back in the day, former egyptian president, hosni mubarak, far from perfect, but seen as an honest broker in these talks, and somebody who is a pillar in trying to bring all sides together. what's interesting is that today president morsi was saying the right things about how he was trying to bring together the parties for a cease fire. but that came two days after republicans on capitol hill threatened to take away u.s. aid unless he played a more constructive role. take a listen. >> egypt, watch what you do and how you do it. you're teetering with the congress on having your aid cut off if you keep inciting violence between the israelis and the palestinians. >> remember as well, it was only two months ago that president obama told television interviewer that he didn't believe egypt was an ally anymore, that raised a lot of

eyebrows at the time. but today we're told the president has now spoken to president morsi three times in the last 24 hours, including on air force one. he needs him as an ally. >> shep: for now, the focus on gaza. but big picture, iran? >> no doubt because of iran's influence on hamas and other terror groups. and there are a lot of security experts who say that this just may be the -- this violence may be the beginning of a much broader conflict in the days ahead to an israel -- between israel and iran. take a listen. >> the problems in the middle east are so continuing. there is a rise of al-qaeda in the middle east and they're taking advantage of the revolutionary change that's sweeping through the region. they were not the catalyst for it. but they are seeking the opportunity on advantage from it. in the shadows here is our number one national security challenge and that's iran. >> on top of that, of course, the crisis in syria showing no signs of clearing up as well. this is why the middle east

right now is a tippedder box and it's putting a lot of pressure on president obama as he kicks off his second term in office. >> shep: not to mention jordan and saudi arabia and beyond. ed henry, thank you. a lot of civilians in the densely populated gaza strip say it is virtually impossible to get out of the way of the hamas militants. according to the c.i.a. world fact books the gaza strip is roughly twice the size of washington, d.c but it holds about a million-plus more people than our nation's capitol. the israeli military warned palestinians to stay away from militants during the conflict, but many people in gaza claim nearly everyone there has ties to hamas in one way or the other. it is the elected government, after all. israel and egypt also enforce a strict blockade on gaza's borders, but hamas developed extensive tunnel systems that they use to smuggle goods, including weapons. team fox coverage continues with jonathan hunt at the united nations for us tonight. israel today targeted hamas'

weapons supply routes, yes? >> yes, shep. a series of strikes at the very southern end of the gaza strip near the city of ratha. that city sits on the border between gaza and egypt. and it is underneath that border that there are dozens, perhaps even, according to israeli forces, hundreds of tunnels through which hamas smuggles, among other things, the weapons, the rockets it has been using to fire on israeli cities. now, those rockets, many of them, particularly the long-range ones that have been fired toward tel aviv and jerusalem, come originally from iran. they are sent through the sudan, smuggled up through egypt. that's when they get to the tunnels. they're broken down and smuggled through them and then taken to the underground launch sites. that is why israeli defense forces targeted those tunnels and have for several days been targeting those rocket launch sites. >> shep: the israeli prime minister, netanyahu, says what

is pretty obvious to most, that is that he's willing to fight, but he doesn't want his forces in there on the ground. >> yes. for the very simple reason that that increases the risk hugely of taking israeli casualties. take look at a flyover map of gaza city. you can see how narrow many of the streets are, how densely populated it is. those streets are the ones down which israeli tanks would have to roll. then you're likely to see the hamas fighters doing what they did on other occasions when israel sent in ground force, such as back in 2006. they build these large sand berms to slow the tanks down. they man them, fighters with rocket propelled grenade launchers. they can fire on the tanks. there is also obviously the risk of israeli soldiers being kidnapped in any sort of ground incursion. the israeli prime minister do not want to have to take that risk and the israeli people, according to all the polls, while they support this campaign

of air strikes, do not support a ground invasion of any sort. shep. >> shep: jonathan hunt live at the united nations. here at home, we got new answers today about who made the decision to characterize the consulate in libya as a ton spainious protest. that's how the u.s. ambassador to the united nations susan rice described it just a few days after a group of men stormed the benghazi compound, killing the u.s. ambassador and three other americans. u.s. officials acknowledge it was a coordinated terrorist attack. republicans have accused ambassador rice and the white house of trying to mislead all of us. now the office of national intelligence director, james clapper, reports it wasn't the white house that changed rice's talking points. it was the u.s. intelligence committee. republicans on capitol hill say they have an issue with that and james rosen is in dc with the details of this saga as they played out today. hello, james. >> hello. the director of national intelligence, retired general james clapper, is the top intelligence officer. his spokesman, sean turner,

issued a statement monday night to all major news organization, except fox news. turner admitted it was, quote unquote, the intelligence community that changed the wording of ambassador rice's talking points. but turner also asserted he and sharp contrast to his own previous statements that the intelligence community always regarded benghazi as a terrorist attack. today republican senator john mccain said issues and i quote, i participated in hours of hearings in the senate select committee on intelligence last week regarding the events in benghazi where senior intelligence officials were asked this very question and all of them, including the director of national intelligence himself, told us that they did not know who made the changes. >> i think clapper has to say and has to say publicly whether he advocated the youtube video theory, whether he pressed it on the white house and others in the intelligence community and if so, did he do that at the direction of the white house. i think clapper's role here as head of the national

intelligence is potentially subsumed by his role as almost a white house staffer. >> democratic congressman adam schiff of california, who sits on the house intelligence committee said today the talking points were amended to protect classified sources of information. were not subject to political spin by the white house or ambassador rice. hillary clinton is set to testify on benghazi next month. >> shep: james rosen live in washington. there is a new report that warns of danger in the air inside our nation's largest airports. it's a health alert for holiday travelers. and then many families who were planning to drive somewhere for thanksgiving may be completely out of luck. rental cars, what rental cars

humans -- even when we cross our t's and dot our i's, we still run into problems. namely, other humans. which is why, at liberty mutual insurance, auto policies come with new car replacement and accident forgiveness if you qualify. see what else mes standard at libertymutual.com. liberty mutual insurance. responsibility. what's your policy? >> shep: disgusting is the airport? not the lines, somebody sneezing kids. just in time for the

thanksgiving rush, there is a new report that details just how much secondhand smoke is still dripping through america's largest terminals. smokers can still light up as they travel through las vegas, denver, wash washing, atlanta and others. according to the centers for disease control and prevention, air pollution levels there can be more than 20 times higher than in nonsmoking airports. jonathan live at the world's biz yeast busiest airport in atlanta. >> it shows ventilated smoking rooms in designated smoking areas are largely ineffective. for example, if you happen to be walking by one of those airport smoking lounges, you're likely breathe not guilty air that's four times more polluted than the air in other nonsmoking sections of that same airport. and five times more polluted than airports where smoking is totally banned. listen. >> there is no safe level of of secondhand smoke exposure and separating smokers from nonsmokers, ventilation and cleaning the air are not ways to

eliminate it from indoor environments. >> the concern is that you have airport employees working around the smoking areas and also nonsmoking travelers literally millions of them walking by these areas, often with small kids being exposed to secondhand smoke. shep? >> shep: what to do? ban it entirely? >> that's exactly what they're saying. they say the only safe way to totally protect people from second happened smoke is to ban smoking from all indoor environments. while most of the 443,000 u.s. deaths attributed to cigarette use each year involve people who smoke, the cdc estimates that secondhand smoke causes 46,000 heart disease deaths a year and 3400 lung cancer deaths each year among nonsmokers. >> shep: all right. jonathan in atlanta's airport. super storm sandy threatening families' thanksgiving plans.

folks in the northeast who planned to rent a car for the holiday are now learning that agencies report virtually no cars are left. the demand for rental cars goes up around thanksgiving. but the storm that devastated parts of the region also damaged thousands and thousands of cars. demand higher because mass transit is still not back to normal in a lot of places and the few rental cars that are available now reportedly cost, well, this is up to $100 a day. but $100 a at this in manhattan is normal. anyway, weekly rates said to be up from $200 to as much as 350 bucks. haz-mat teams on the case after a fire ripped through a chemical manufacturing plant and that tops our news across america. pennsylvania. happened early this morning. some 20 miles north of philly. planes reportedly shot 30 feet above the building. it took two hours to contain the thing. haz-mat crews are monitoring air quality while investigators work on what caused the fire.

colorado. wildlife officials removed more than 1,000 cow fish from a pond in bolder. koy are not native to the area and could harm or kill other species in the water. >> unfortunately i think somebody may have dumped them here. >> shep: crews say they will relocate them to a pond in a nearby bird sanctuary. new jersey. two brothers have launched a nonprofit called the g.i. go fund to help homeless veterans. they say they'll set up a coat drive and provide needy vets with warm meals and shelter. one brother was friends with an army lieutenant who died in iraq. oklahoma. a woman from los angeles now one race closer to completing her goal of 52 marathons in 52 weeks. tulsa's route 66 marathon marked her 34th street weekend running 26.2 miles. the woman some call the marathon goddess, says she's doing it in memory of her father who died of

pancreatic cancer. she says she'll give the money she raises to cancer research and that's a fox report across america. we're gotting word of a hiccup and the push to save twinkies. a new report claims the company that makes twinkies may not be coming back from the dead after all. so who is to blame? developing news next e never sou. oh, yeah! [ male announcer ] that's because it's always made with real cream, never hydrogenated oil like some other whipped toppings. the sound of reddi wip... [ whoosh ] ...is the sound of joy.

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>> shep: right now last ditch effort to save more than 18,000 jobs has fallen through. that's according to officials with hostess brands. the company behind twinkies and wonder bread and another big named baked goods, a spokesman for the company tells fox business the mediation was unsuccessful. we'll have no further comment

until the hearing tomorrow. according to the report, he gave the "wall street journal," hostess now plans to go through with the shutting down and selling off of all the assets. hostess executives say union demand gave them no choice. union leaders blame mismanagement, claiming, for example, that hostess gave more than a dozen executives 80% raises as it knew the company was tanking. we'll learn more at the bankruptcy hearing tomorrow. again, it appears last ditch efforts to save twinkie workers has failed. and hostess plans to go ahead and shut down. a warning for lawmakers just weeks ahead of a potential economic crisis. the fed chairman, ben bernanke, today urged congress and the white house to strike a deal to keep us from plunging off the fiscal cliff. he says a compromise would prevent sudden and severe shock to our economy. if the two sides do not reach a deal, we know exactly what's going to happen. after new year's day, tax cuts expire for everybody.

and deep automatic spending cuts take effect. economists say that could send us right into another recession. mike emmanuel live on capitol hill. hello, mike. >> shep, congressional sources say talks have been business like and productive and almost everybody realizes they're going to have to give a little to get this done. several senators mentioned entitlement reform when i asked about where to cut. >> reform doesn't mean you throw these programs out. you run them more efficiently. you look at the fraud or waste and abuse that's been identified and then you come into the revenue picture. you know. people will call me and say, we need to trim this program. good with me, but the problem is it doesn't generate the difference that you need to make here. >> nebraska senators calling for going big, tax reform and entitlement reform since those are huge lifts for congress. for now, they could set numbers for spending cuts and revenue increases and then order different departments and agencies to make it happen.

one expert says congress in the white house could take an important step to establish a degree of trust. >> the first stage of entitlements that they could do and they could do it in this initial bill would be to pare back medicaid and food stamps in some of those areas as the house budget recommended doing. that would provide a down takenment on bigger entailingment reforms later. >> to save money they could limit the amount of entitlement benefits on upper income folks or reduce deductions. >> shep: mike emanwell live. thanks. allen west realized it's over. two weeks after the election, two weeks, the republican congressman today at last conceded defeat. there was a court battle and some recounting in south florida, but at every turn, he lost again. you probably recognize the name allen west. he's the tea party favorite who once claimed that up to 80 house democrats were communists. he had no evidence and the claimed the president's supporters were a threat to the

gene pool. he also called democratic national committee chairwoman debbie wasserman schultz, vile, unprofessional and despicable. voters rejected him. favoring the democrat patrick murphy. so now just one other house race is still undecided. there, eight term knock north carolina democrat has a 655-vote lead. his republican challenger asked for a recount, which he's entitled to under state law because the margin of the vote less than half a percentage point. the guy whose name is on the computer security software that millions of us use say he's hiding from police in plain sight. they're trying to track down the guy in a serious murder case. now he says he's found the perfect disguise and wait 'til you hear about it next [ male announcer ] there are only so many foods that make kids happy. and even fewer that make moms happy too. with wholesome noodles and bite sized chicken, nothing brings you together like chicken noodle soup from campbell's.

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>> bill: the millionaire software company founder john mcafee is blogging about his life on the run from the cops. mcafee of computer antivirus

mcafee fame, is a person of interest in the killing of a neighbor in the central american nation of belize. he says he's been wearing a disguise and hiding in plain sight, quote, i stuff my cheeks with chewed bubble gum, making my face appear much fatter. i darkened and browned my front teeth. i stuffed a -- you read it. giving his nose an awkward lop sided disgusting appearance. of course, they say he's a pathological liar. the slain neighbor had reportedly complained about mcafee's dogs and turned up dead shortly after somebody poisoned it, said dogs. gross. before we go, our team's top five things, number five, experts forecasting a banner year for on-line christmas shopping. number four, federal health officials say they approved a new flu shot that's faster to make. number three, prosecutor in indianapolis says the deadly blast that leveled homes there was no accident. number two, the feds say one of the four americans accused of

plot to go bomb military bases once served in the u.s. air force. and number one, secretary of state clinton spoke alongside israel's prime minister netanyahu in israel. a calling for a lasting solution to the violent clashes with gaza and that's the fox report's top five. on this day in 1982, the university of california football team pulled off one of the most exciting comebacks in sports history with a kickoff return that fans now refer to simply as the play. cal bears down a point, stanford, 4 seconds left. looks like it's all over. then laterals. one lateral pass after another by cal players. five in all to keep it going. they're still jawing over whether any of those players were down or whether any of those laterals was actually a forward pass. but the refs never blew the whistle, even as the band took the field. and the bears scored through the brass section 30 years ago today. stanford band